The market downtime during Christmas week may provide excellent chance to grab some fast and easy pips, although riding the low-volume market can be a bit tricky. For those active traders, who are ready to join such adventures – here are some important points to consider:
- Christmas week, as other holiday periods is featured with Holiday schedule (special trading hours). A trader should familiarise and follow a trading schedule to keep full control over opening and closing of his trading orders.
- The Christmas week features widening spreads and slippage in execution. due to. drained market liquidity. It is certainly, not a good time for frequent scalping.
- History shows that average pip movement on majors drops from 2% to 45%. It may serve as another indicator for the lowered liquidity.
- This year Christmas and New Year Day coincides with weekends. On Monday, December 26th the markets is closed in Australia, Canada, Switzerland, UK, Norway, New Zealand, United States, South Africa and the European Union. Tuesday is a holiday in Australia, Canada, UK, Hong Kong and New Zealand, so trading volumes will be affected.
- The volatility outbreaks are expected during the release of the Japan consumer inflation report and Consumer Confidence in the US on Tuesday, US Advance Goods Trade Balance and updates on Crude inventories from EIA on Thursday.
No matter, how you are trading the Christmas period. We at Tickmill, want to wish you a profitable and peaceful time. May your Christmas be filled with high volumes of joy!